BOW WAVE 152

Eclectic Edition

news and views on trade, insurance and risk

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Wavy Line	sam@wavyline.com
(c)2002 WavyLine.com	Issue No 152 21 Oct 02
Published free of charge to Readers
Editor: Sam Ignarski
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In this issue:

1. Welcome
2. Indonesia AP War Risk Area
3. Lloydslist.com Milestone
4. Effect of House Security Bills on Bills of Lading
5. N-Q-I-T
6. And Finally...

1. Welcome

New Readers this week include:

Pieter Jansz of Transport Management Europe nv
Jerold Blum of Transure, Ltd in Marlton, New Jersey Bill Lines of the Baltic Exchange
Husein Makarevic of the Chamber of Foreign Trade of Bosnia and Herzogovina
Readers at PSA SICAL Terminals Ltd in Tuticorin,India Club Correspondent Wichien K in Bangkok
Ron Seignious and Ivan Joens of APL
Multimodal Specialist PP Singh

News of Readers

We understand from Philip van Bergen that Dr Panagiotis Nomikos has joined the Maritime Consultancy Network--the maritime IT and marketing organisation set up earlier this year.

Dr. Nomikos started his career in 1991 at the IT Department of Troodos Shipping and in 1992 was picked by Stelios Hadjioannou to be the IT Manager for Stelmar Tankers. He was also the founder of Netshipbrokers.com, an online chartering service.

An eclectic Issue this week with something for everyone, we hope, also with apologies to the inhabitants of Dudley for our rude item 6.

Enjoy.

2. Indonesia AP War Risk Area

Notices went out last week on 17OCT02 from the of Lloyd's Joint War Risk Committee that Indonesia has been added to the general war trading warranties. All vessels visiting Indonesian ports will have to consult with their underwriters for their war coverage. The notice
effectively informs hull underwriters that Indonesia has been placed onto a list of excluded areas, which means a vessel's existing insurance coverage can be cancelled if it intends to travel into this area.

How much extra is it likely to cost shipowners to call at Indonesian ports? In normal times, the war risk cover is thrown in for virtually nothing. In Yemen, today, a port call may, it is said, cost around 0.45 per cent. For an Indonesian port the talk in Singapore says the figure is more like around 0.025 per cent of the hull and machinery value. We shall see.

3. Lloydslist.com Milestone

We have heard from those tireless editors Neville Smith And Mark Warner that lloydslist.com is one year old this month. The story so far:

"We started sending the bulletin to subscribers in October 2001 and in April this year we made the service a completely free opt-in that any reader could sign up for. Since then, reader numbers have climbed to (and just surpassed) 5,000 and the unsubscribe rate is low.

We like to think of this as the perfect product, it's free, it's a small, plain text and you get a heads-up maritime industry briefing delivered to your inbox every day before noon London time."

If any Bow Wave readers would like to sign up, go to:

http://www.lloydslist.com/bulletin.

4. Effect of House Security Bills on Bills of Lading

We have received briefing no 12 from the transport and insurance law firm of Davies Lavery which concludes:

"The Bill of Lading and other transport documents, have served their purpose in billions of transactions throughout the years. These documents have a characteristic which makes them essential for the normal functioning of international commerce; they are flexible. Documents such as the YMLUSA-ATAI (on which we are still awaiting confirmation from the US authorities as to its origin), or Bill Number S.2426 IS. supported by Mrs Clinton, Senator for New York and Mr. Corzine, Senator for New Jersey, show that there is a lack of consideration being given to the consequences which this legislation will have for international commerce and in particular, the transport industry.

The legal effects on Bills of Lading and other similar transport documents cannot be taken lightly. There is considerable precedent law which shows that these are instruments of vital importance and, as we have
demonstrated, there are a number of issues which
Congress has to consider before bringing this
legislation into effect.

The Transport trade’s representatives around the
world also must understand that the law is what
regulates the transportation of goods and that
because the issue of security is now of vital
importance, legislation will be the only instrument which can provide a working system. This must be
considered against the fact that the US should not act unilaterally as it is an issue that affects all nations. A Convention that all countries may sign is the way forward.

During the last few months we have stressed the
importance that the process of packing should
have in relation to the issue of security.
We have sent reports to the Government
Ministries in relation to Exporters/importers,
agriculture, and other Associations which may
have an involvement in this process. Without
their cooperation the transportation of goods
will be much more difficult, as trade facilities
are reduced at the expense of security.
Furthermore, carriers and forwarders should be
aware that if enacted, the new security legislation will make them liable whilst existing legislation relating to carriage of goods will rob them of
the prospect of recovery from third parties.
Whilst "said to contain" is acceptable under
the Hague-Visby Rules it will not be under the
expected legislation."

For the full briefing contact

Sam.Perez@Davies-Lavery.co.uk

or

Kay.Pysden@Davies-Lavery.co.uj

5. N-Q-I-T

This week's issue of Mike Miller's Page One contains some food for thought from "The Missoulian" on the domestic effects of the West Coast Port Strike on cargo throughput:

MOVING FREIGHT ­ CHALLENGE

Unloading ships is just the beginning. Moving freight from west to east won't be easy.

"People think it's all over, but it's not," says Andy Ross. "It's not just about getting the containers off the boats. Now it's the infrastructure of America that's going to be congested."

His Ross Glove Company has 70,000 pairs of gloves waiting to unload on a ship in Long Beach. The gloves have to get to him in Wisconsin. He then has to get the gloves to retailers all over the US. Ross ordered a smaller shipment of gloves by air-freight. But it will cost him an extra $30,000 - six times the cost of shipping by sea.

So how fast are goods moving?

Port truckers say the scene is not pretty. Truckers say their job is taking twice as long as usual.

The 200 or so ships anchored off the coasts of California, Oregon and Washington are carrying enough freight to fill more than 650,000 tractor trailers.

See the full edition at;

http://www.allenins.com/pageone.html

6. And Finally

Thanks to Reader Geoff Hunt for passing on this sardonic follow up of the recent and rather unusual earthquake whose centre was within the homely acres of the English Midlands. It was last seen doing the rounds of the informal international banking networks:

URGENT - DUDLEY EARTHQUAKE APPEAL

At 00:54 on Monday 23 September an earthquake measuring 4.8 on the Richter scale hit Dudley, UK causing untold disruption and distress.

* Many were woken well before their giro arrived
* Several priceless collections of mementos from
the Balearics and Spanish Costas were damaged
* Three areas of historic and scientifically significant litter were disturbed
* Thousands are confused and bewildered, trying to come to terms with the fact that something interesting has happened in Dudley...

One resident, Donna-Marie Dutton, a 17 year old
mother-of-three said "It was such a shock, little Chantal-Leanne came running into my bedroom
crying. My youngest two, Tyler-Morgan and Megan-Storm slept through it.I was still shaking when I was watching Trisha the next morning."

Apparently though, looting did carry on as normal.

The British Red Cross has so far managed to ship 4000 crates of Sunny Delight to the area to help the stricken masses.

Rescue workers are still searching through the rubble and have found large quantities of personal belongings including benefit books and jewellery from Elizabeth Duke at Argos.

HOW YOU CAN HELP

* £2 buys chips, scraps and blue pop for a family of four * £10 can take a family to Stourport for the day, where children can play on an unspoiled canal bank among the national collection of stinging nettles
* 22p buys a biro for filling in a spurious compensation claim

PLEASE ACT NOW

Simply email us by return with your credit card details and we'll do the rest!

If you prefer to donate cash, there are collection points available at your local branches of Argos, Iceland and Clinton Cards.

BOW WAVE is published each week to around 7550 Readers in the transport,insurance,shipping and finance industries.

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